What is an Arizona Automobile Dismantler & Parts Recycler Surety Bond?
Automotive recyclers in the state of Arizona are required to post a $20,000 surety bond to conduct business. An automotive recycler is a person who buys or acquires six or more vehicles in a calendar year for the purpose of dismantling, selling or otherwise disposing of the parts or accessories.
This Arizona Automobile Dismantler & Parts Recycler Surety Bond guarantees that the principal (recycler) operates their business in accordance with all laws and regulations found in the Arizona Revised Statutes. This bond also protects harmed parties from financial loss if the principal fails to comply with the terms of the bond. If a valid claim is filed against the bond, the surety will pay out up to the penal sum of the bond to resolve the claim. The principal is then required to reimburse the surety for all monies paid out, including any attorney fees incurred.
What is the fine print of the bond?
- The bond must be issued by a surety authorized to conduct business in the state of Arizona
- The principal must be duly licensed as an “automotive recycler” by the Arizona Department of Transportation as provided for in Title 28, Chapter 10 of the Arizona Revised Statutes
- The bond is continuous in nature and remains in full force and effect until canceled
- The bond can be terminated by the surety at any time by giving sixty (60) day written notice to the Arizona Department of Transportation
How much will my bond cost?
Pacific Surety is proud to offer a variety of approvals regardless of credit, with rates as low as 0.60% annually for well qualified applicants. The process typically takes just a few hours for a quote, and we have the ability to beat any competitors pricing. If you have any specific questions, feel free to contact our knowledgeable underwriting staff.
ADDITIONAL RESOURCES
- Arizona Department of Transportation Vehicle Dealer Bond Form
- Arizona Department of Transportation Automotive Recycler License Information
- Arizona Department of Transportation Motor Vehicle Dealer License Application
- Arizona Department of Transportation
- Arizona Revised Statutes – Title 28, Chapter 10